RDN: Recoveries Close 2012 on Downward Path
After climbing for two months in a row, the latest RDN Monthly Analytics Update indicated December recovery volumes decreased 1 percentage point from the November level, leaving 2012 closing on a trend of consecutive month-over-month dips.
However, the December reading came in flat against year-earlier levels.
Countering that downward movement, RDN indicated December recovery orders ticked 5 percentage points higher from the previous month. Despite the uptick, the December order rate settled 10 percentage points lower year-over-year.
The RDN Recovery Market Trend Summary — a rolling comparison of new- and used-vehicle buyer’s FICO scores against the percentage volume of recovered vehicles relative to the volume of vehicle sales financed — showed the volume of recoveries relative to retail new- and used-vehicles financed decreased during December versus the prior month.
Recovery volumes as a percentage of sales financed ended at a 31 index level in December, which represents a 4 percentage point drop from the prior month and a 1 percentage point dip versus the prior year.
RDN went on to mention that among the top 20 largest cities with the highest recovery volumes, New York highest actual and relative volume increase during December.
Officials found that seven cities all had at least 12,000 repossessions last year. That group included:
—Chicago: 30,149 units
—Los Angeles: 28,649 units
—Dallas: 19,526 units
—Houston: 18,965 units
—New York: 16,549 units
—Phoenix: 14,934 units
—Detroit: 12,360 units
Finally, RDN pointed out that once again Texas led the nation with the highest volume of involuntary recoveries at 12 percent of the nation’s total for December, a little less than 7,100 units. The company added that Texas, Florida and California constituted 29 percent of all recoveries nationwide for the month.
The Sunshine State also paced the country with the highest volume of voluntary recoveries at a little less than 1,200 units recovered during December.